StockMaster favorite Evergreen Solar, Inc. (NASDAQ:ESLR) hit $1.80 a share and is now trading around $1.85, make that a one year decline of -81%.  Investors are bailing and getting knocked around today after Evergreen reported a Q4 loss of $52 million. Punch Out indeed.
Evergreen reported a Q4 loss of $52.1 million, or 32 cents per share, compared with net income of $788,000, or a penny per share, in the year-earlier period. The latest results include charges of $23.1 million to close a Massachusetts facility, $8 million to write-down research and development. The facility’s closure was first announced last month.  These dudes aren’t clapping and smiling today, quite the opposite.

However revenue nearly doubled to $44.2 million from $22.2 million in Q4, but analysts (polled by Thomson Reuters) expected, on average, a loss of 14 cents per share on revenue of $46.7 million.  As expected the downgrades have already came in this morning, lowering price targets and Piper moved their recommendation to ‘Neutral’ from ‘Buy’.

Evergreen’s CEO Richard M. Feldt said the following on the call:

“The long-term market prospects for the solar industry are very promising, especially given the significant commitment to renewable energy by the Obama administration. However, like all companies in the industry, we expect that demand for solar products in the first half of 2009 may be materially impacted by both the typical seasonal weakness and the difficult worldwide economic and credit environment.

Our Devens capacity expansion remains on plan and we expect to reach full capacity of 40 megawatts (MW) per quarter by the end of 2009. With the closure of our pilot manufacturing facility in Marlboro at the end of 2008, our process and technical employees are completely focused on Devens and will help us achieve our manufacturing cost target of approximately $2 per watt as we ramp capacity and streamline factory operations during the year.

So do you take a risk on ESLR despite today’s 16% drop in share price?  Can hope of the Obama administration help Evergreen to recover market share?

For the moment it appears no one is willing to take that risk and without a Q2 guidance to go on, its a risk even at $1.80 a share.  But the question is for how long?

Those of you that have played Evergreen in the past are aware of how volatile the stock can trade and any good news for the Solar Sector or new contract scored by Evergreen can lift the stock 5 to 10% in minutes.

Let the dust settle on ESLR, more analysts will come at the stock and if you must buy today, expect a bumpy ride until Evergreen gets some positive press.

Disclaimer: No positions in ESLR.